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Evaluation of Best Price Clauses in Online Hotel Bookings


Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich; Schlütter, Frank (2018). Evaluation of Best Price Clauses in Online Hotel Bookings. International Journal of Industrial Organization, 61:542-571.

Abstract

We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

Abstract

We analyze the best price clauses (BPCs) of online travel agents (OTAs) using meta-search price data of nearly 30,000 hotels in different countries. We find that BPCs influence the pricing and availability of hotel rooms across online sales channels. In particular, hotels publish their offers more often at Booking.com when the OTA does not use the narrow BPC, and also tend to promote the direct online channel more actively. Moreover, the abolition of Booking.com’s narrow BPC is associated with the direct channel of chain hotels having the strictly lowest price more often.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:2018
Deposited On:25 Sep 2019 13:50
Last Modified:25 Sep 2019 14:30
Publisher:Elsevier
ISSN:0167-7187
OA Status:Closed
Publisher DOI:https://doi.org/10.1016/j.ijindorg.2018.03.008
Other Identification Number:merlin-id:18310

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Embargo till: 2021-04-10